Texhong Textile Group Limited
Texhong Textile Group Limited Fundamental Analysis
Texhong Textile Group Limited (2678.HK) shows weak financial fundamentals with a PE ratio of 5.45, profit margin of 4.02%, and ROE of 9.03%. The company generates $22.5B in annual revenue with weak year-over-year growth of -3.91%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 2678.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak2678.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent2678.HK trades at attractive valuation levels.
Growth Score
Moderate2678.HK shows steady but slowing expansion.
Financial Health Score
Excellent2678.HK maintains a strong and stable balance sheet.
Profitability Score
Weak2678.HK struggles to sustain strong margins.
Key Financial Metrics
Is 2678.HK Expensive or Cheap?
P/E Ratio
2678.HK trades at 5.45 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 2678.HK's PEG of 0.22 indicates potential undervaluation.
Price to Book
The market values Texhong Textile Group Limited at 0.48 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.80 times EBITDA. This is generally considered low.
How Well Does 2678.HK Make Money?
Net Profit Margin
For every $100 in sales, Texhong Textile Group Limited keeps $4.02 as profit after all expenses.
Operating Margin
Core operations generate 6.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.03 in profit for every $100 of shareholder equity.
ROA
Texhong Textile Group Limited generates $4.47 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Texhong Textile Group Limited produces operating cash flow of $4.93B, showing steady but balanced cash generation.
Free Cash Flow
Texhong Textile Group Limited generates strong free cash flow of $4.05B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.41 in free cash annually.
FCF Yield
2678.HK converts 82.06% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.22
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.48
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.54
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.42
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How 2678.HK Stacks Against Its Sector Peers
| Metric | 2678.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.45 | 23.78 | Better (Cheaper) |
| ROE | 9.03% | 1098.00% | Weak |
| Net Margin | 4.02% | -626.00% (disorted) | Weak |
| Debt/Equity | 0.54 | 0.86 | Strong (Low Leverage) |
| Current Ratio | 1.42 | 2.64 | Neutral |
| ROA | 4.47% | -8081.00% (disorted) | Weak |
2678.HK outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Texhong Textile Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
12.68%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
71.47%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-100.00%
Industry Style: Cyclical, Growth, Discretionary
Declining